Analyzing GreenTree Hospitality Group (GHG) & Its Rivals

GreenTree Hospitality Group (NYSE:GHG) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its competitors? We will compare GreenTree Hospitality Group to similar companies based on the strength of its profitability, earnings, dividends, risk, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for GreenTree Hospitality Group and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GreenTree Hospitality Group	1	0	0	0	1.00
GreenTree Hospitality Group Competitors	3793	17203	25473	901	2.50

As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.73%. Given GreenTree Hospitality Group’s competitors stronger consensus rating and higher possible upside, analysts clearly believe GreenTree Hospitality Group has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

8.1% of GreenTree Hospitality Group shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 88.7% of GreenTree Hospitality Group shares are owned by insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

GreenTree Hospitality Group has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, GreenTree Hospitality Group’s competitors have a beta of 1.62, meaning that their average share price is 62% more volatile than the S&P 500.

Dividends

GreenTree Hospitality Group pays an annual dividend of $0.05 per share and has a dividend yield of 5.2%. GreenTree Hospitality Group pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 37.5% of their earnings in the form of a dividend.

Profitability

This table compares GreenTree Hospitality Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GreenTree Hospitality Group	4.14%	2.49%	0.84%
GreenTree Hospitality Group Competitors	2.30%	-40.19%	2.09%

Earnings and Valuation

This table compares GreenTree Hospitality Group and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GreenTree Hospitality Group	$156.92 million	$23.85 million	19.40
GreenTree Hospitality Group Competitors	$3.70 billion	$247.14 million	-142.01

GreenTree Hospitality Group’s competitors have higher revenue and earnings than GreenTree Hospitality Group. GreenTree Hospitality Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

GreenTree Hospitality Group competitors beat GreenTree Hospitality Group on 10 of the 15 factors compared.

GreenTree Hospitality Group Company Profile

GreenTree Hospitality Group Ltd., through its subsidiaries, develops leased-and-operated, and franchised-and-managed hotels under the GreenTree Inns brand in the People's Republic of China. It also engages in investment holding activities; and provision of information technology services. The company was founded in 2004 and is headquartered in Shanghai, the People's Republic of China.